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Mauritius seeks India’s help after new tax treaty

New tax treaty

New Delhi, Sep 19 (UITV)- Mauritius expressed hope to remain one of the biggest investment routes to India post revision of the bilateral tax treaty, as the two nations move ahead with talks on trade liberalization pacts.

In return for allowing India to tax investments routes through it, Mauritius wants an economic aid package. With this demand the finance minister of Mauritius, Pravind Jugnauth met Indian Finance minister Arun Jaitley.

“Now that the tax treaty is revised, Mauritius is seeking a package in the form of line of credit and more investments from India to boost its economy and generate employment,” an official said.

After meeting Indian finance minister, Pravind Jugnauth said the negotiations on Preferential Trade Agreement (PTA) and Comprehensive Economic Cooperation Agreement (CECPA) are moving ahead.

When asked about if FDI inflow to India from Mauritius will reduce following revision of the bilateral Double Taxation Avoidance Convention (DTAC), Jugnauth expressed hope that the island nation will continue to “play the role of the biggest investment route to India” because it benefits both the nations.

This is the first visit of Mauritian Finance Minister after the revised treaty was signed between the two countries.

India wants cordial relations with its neighbors, especially the island nations in the seas around it. “They are strategically placed around India. We don’t want to cede space to other countries to jump in and take advantage of these small nations,” said a top official in finance ministry.